According to a statement made by the Massachusetts Attorney General this week, the owner of an asbestos abatement company was allegedly indicted this month and will face arraignment next month in connection with purportedly failing to report the nature of his company’s work accurately, in order to avoid having to pay thousands of dollars in workers’ compensation insurance premiums.
The business owner was indicted on six counts of larceny over $250 and six counts of workers’ compensation fraud. He was reportedly the sole owner of the business in question. At this time, it is unclear whether any employees were denied worker’s compensation on the basis of his actions.
The issue with misrepresenting the nature of the type of work that one is undertaking, as a general matter, is that it creates the potential for additional financial risk in the event that the employees engaged in a particular line of work become injured. It can place an incredible strain on the system and works to harm others who have contributed to the program as required by law.
In this case, as with many others that have recently been announced in Massachusetts, an investigation was undertaken by the Insurance Fraud Bureau of Massachusetts (IFB), following allegations from an unknown source that the company was believed to be committing insurance fraud. There have been several similar reports of alleged fraud in recent months.
The Chief of the IFB said in a statement that both his organization and the Attorney General’s office are committed to working together in order to pursue any individuals engaged in workers’ compensation premium evasion. Misrepresentation regarding workers’ compensation insurance is considered fraud and is punishable under criminal laws.
According to reports, the business owner who was indicted allegedly falsely reported the nature of the company’s work as removing asbestos from pipes and boilers only, even though the majority of the work that the company performed was purportedly on other materials. The fraud is alleged to have occurred over a seven-year period.
It was based on that allegedly improper reporting that the business owner was granted lower insurance premiums for his company’s policies. This conduct reportedly put the employees of the company at risk, since they were engaged in more dangerous asbestos removal work. The Attorney General states that the owner allegedly avoided paying more that $35,000 in insurance premiums on the basis of this misrepresentation.
If you get injured on the job or become sick, you may be entitled to workers’ compensation benefits for your injuries and lost wages. The experienced Massachusetts workers’ compensation lawyers at Pulgini & Norton offer comprehensive guidance and representation in these matters. We can assist you throughout the entire workers’ compensation claim process. Call our office today at (781) 843-2200, or you can contact us online in order to schedule an initial consultation.
More Blog Posts:
Mental Injury Benefits from Workers’ Compensation, Massachusetts Workers’ Compensation Lawyer Blog, published June 12, 2015
Massachusetts Appeals Court Denies Psychiatric Workers’ Compensation Claim, Massachusetts Workers’ Compensation Lawyer Blog, published June 5, 2015